Technics Awarded USD $26 Million Contract from Vietsovpetro for “Dragon” Oilfield Offshore Vietnam

Mainboard listed Technics Oil and Gas Limited (“Technics” or together with its subsidiaries, the “Group”), a leading full service integrator of compression systems and process modules for the global offshore oil and gas sector, today announced that it has secured another EPCC contract from JV Vietsovpetro (“VSP”) for the provisioning of the topside equipments for wellhead satellite platforms named RC-6 and RC-7 for the “Dragon” oilfield in offshore Vietnam, worth an estimated S$35 million (Approximately USD 26 million).

The two platforms from this latest contract are expected to produce up to a total of 84,000 barrels of crude oil per day. Project planning will commence in September 2010 and is targeted for completion in September 2011.
Technics will be responsible for the engineering, project management, procurement, fabrication, supervision of installation and hook up, onshore and offshore commissioning of topside modules for the two platforms. It will also supply the full package of equipment and systems, such as oil and gas processing equipment, power generation, electrical/control, accommodation modules, as well as other auxiliary equipments and systems.

Continuing its strong working relationship with Vietsovpetro

Vietsovpetro is a leading oil and gas company in Vietnam and is a Vietnamese-Russian joint venture established in Vietnam between state-owned Petrovietnam (Vietnam Oil and Gas Corporation) and Zarubezhneft of Russia.
Commenting on this latest contract, Mr. Robin Ting, founder and Group Managing Director said, “Technics continues to maintain a strong working relationship with our longtime partner, Vietsovpetro by providing consistent quality and efficient services. We are therefore pleased to receive yet another substantial contract from Vietsovpetro,  which signifies Vietsovpetro’s continued confidence in our capabilities.”
Including this latest contract, Technics had been awarded a total of 13 wellhead satellite platforms orders by Vietsovpetro. To date, ten projects had been completed and delivered, including BK-14 and BK-15 which was delivered in July 2010. In addition, Technics also earlier secured an S$16m million EPCC contract in November 2009 for a wellhead satellite platform, BK-9, which is slated for completion by November 2010.

This latest contract is not expected to have any material impact on the earning per share for the financial year ending September 2010.

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Source: Technics,September 23, 2010,